Congrats!

 

Congratulations, hope the owner isn't charging you current interest rates. An owner financed deal could be the best deal going right now. 😂

 

10%

 

Congrats x2!
Better to have that rent money being converted to ownership!
Happy for you 👍

 

Congrats!

Is this a land contract or a true owner finance where you will be deeded the property and seller carries a note and has a lien on the property?

 

I signed a notarized contract

 

great googly moogly

 

Congrats!

Is this a land contract or a true owner finance where you will be deeded the property and seller carries a note and has a lien on the property?

I signed a notarized contract

10%

Congrat's! Home ownership is a good thing in a persons life.

KInd of NOMB, and you done done your deal, but will give you some points to look at in your deal you made. We do a great amount of owner financing on properties we own thru a rent with option to buy contracts. Have 42 under contract right now & have done 100% over the years. Has worked very well for us over the years. IMO, like I said above, home ownership is a great thing for folk & when done they take pride in doing so. Seem to get a whole different type cliental thru this method than doing straight rentals. I know you said you signed a notarized contract but really left out what you have done. Was it a true conventual mortgage or was it a rent with an option to buy contract? They are two totally different critters in the way things are handled. On our rent with option to buy contracts we do, on the front end we ask the folks to place a down payment of 5% of the asking price down. Just did one this week on a $75,000 property. Their down was $3750. Balance remaining would be $71,250 and we change a flat interest rate of 6% (NOT 10%!!!!!!---that's about loan shark interest rates) on a 15 year rent with option to buy contract. Their rent that is converted into a purchase payment at the end of term is going to be $715. The deed to the property remains in our trust name until the ending of the contract is done then the deed is transferred to the other party. If for some reason (and to be honest it very rare it happens under this method) a party decided to not retain the property & leave, it is treated as just renters leaving. Also, and again very rare, (only had 3 over the years) you get folks who decide to be dead beats, it's not a foreclosure action that has to be taken to remove them, it's handled just like a simple renter eviction.

In the contract we allow an early option to buy only after a time period of 60% of the time of the contract, or after 9 years, before that time, no early out option is allowed. In our deals we pay the property taxes and keep full coverage insurance on the property also. All this prevents the possibility of 2cd mortgages being taken on the properties, escrows being done and the likes. The parties who enter into this deal are provided with copies of taxes and insurance coverage each to show it is in good standing each year. The party in the contract is advised to retain renters coverage for their personal property because out coverage is only for the property only. In the event of a causality loss on the property, fire, storm or the like that is covered under the policy we have, we agree to fix what is damaged with monies remitted by the policy. Any other normal repairs needed on the property caused by normal day to day living is the responsibility of the option to buy party. In the event of a total lose we do not agree to replace the property though. At that time the contract is considered null & void. What we do though, out of good faith is after this 60% time period of the contract, or 9 years, and IF the party is in good standing, in the event of a total loss of the property we remit back to the contract rent to own party their vested principle balance they have accumulated to that point., much the same as would be done with a conventual mortgage. Law really does not require this to be done, but we feel it is the right thing to do. Folks lived up to their end of the bargain, not their fought an act beyond their control happen.

Again, Crongrat's & good luck on your first home!

 

I'd kind of feel bad for reading but not responding so I'll say this, that sounds like a great deal and you definitely know your stuff. I'm aware I didn't get the best deal but it was pretty much a "take it or leave" kind of thing. Once it's paid off and our financial issues are taken care of we plan to sell and move to Rogers and live in an apartment. I honestly don't care to own a house simply bc I invest my time in so many other activities that we're normally only at home to sleep. So basic maintenance and upkeep such as mowing lawns, etc. are honestly a bit of a inconvenience for the way we live.

 

Its tough to get into your first home. Sometimes you have to settle for a deal that's not always the best, but you have to take the best option that's available to you. Good luck, and congrats. I bet it all goes good, as long as the lady is honest. Her 10% may be less than 10 at a bank. Even if it's not, you are renting it now, so you are still money ahead! 10 ain't terrible anyways.

 

5 years to be debt free is a good plan. Tickles me to see young families getting all set up.

 

I’m still living in the only house I’ve ever owned, paid in full within 20 years.
Now to put some equity back into it to get the hell outa Dodge.

 

I don't want to live in Star City but we're kind of stuck here for a few years anyway so this all just happens to workout to give us a jump when we go to move.

 

My first home loan in 1979 was way over 10%....... 😄
And that was a GI loan - much better than what the banks were offering.
As our Illustrious Vice President might say....
"It is what it is, and it will be what you can make it be.... as long as you can make it...."
....or something like that.
Dude, you turned lead into gold... You'll do fine. If a regular loan was out of reach and you managed a way to get the outcome you desired - you did great!
Congrats again, welcome to the financial recovery path!
I think we all walked it at some point in our life. 👍

 

Thanks so much

 

Congrats on your first home! That's a big step and wish you best of luck!

 

Congratulations. I know you feel good.

 

First time in years I haven't had to worry about being evicted for no reason or my landlord passing away

 

Congratulations!
I would say two things. Not that you asked.

1: If you have not already, scrape up a couple hundred bucks to have a real estate attorney, or maybe you know a broker, or even just an agent. To look at your contract. Find out what you really signed.
2: Only sell real estate to get more real estate.

 

I'll agree on the attorney part but we're the kind of people that one day want to go back to living in a camper and traveling the country. When my father passes away (hopefully a long time from now) I'll already be inheriting another house and property. Some people like having a lot of land and possessions but not us. We're the " you can't take it with you when you die" kind of people.

 

I know exactly what you saying on the eviction, been there done that except on the other side, bought a house that had renters in it and the seller didn’t tell them it sold. I felt like crap having to kick them out, ended up buying a bunch of stuff from them so they had the money to move.

 

My 2nd house was owned by an old man and once he passed his grandkids evicted me so they could demolish the house and build a shop for their farm equipment

 

Renting isn’t always a bad deal. Especially if it’s temporary. Most landlords dont randomly kick people out. Or sell out from underneath them. By the time you factor in insurance, maintenance, taxes, and then factor in interest and depreciation, you could easily lose more buying the wrong place than renting the right one. Both options are usually MUCH cheaper than RVing full time. If I was planning on RVing full time later in life, and I am, I would suggest setting up some passive income streams. Buy a duplex and rent half out to pay for it. Real estate is the only game where you can make money with nothing more to invest than ink from a pen.

 

We lived in a 18' bumper pull for 2 years and you're right it can cost just as much as renting depending on how or where you stay. We would setup behind my in-laws house a couple nights during the week then either camp in primitive sites like in the mountains and on wmas or stay at corps sites

 

Congratulations and best wishes to you & your family in your new home.